Calcutta High Court
Kamdar Plastics Private Limited And Ors vs L & T Finance Limited on 11 September, 2025
Author: Arindam Mukherjee
Bench: Arindam Mukherjee
OD-10
ORDER SHEET
IN THE HIGH COURT AT CALCUTTA
ORDINARY ORIGINAL CIVIL JURISDICTION
ORIGINAL SIDE
APOT/224/2025
IA No. GA/1/2025
KAMDAR PLASTICS PRIVATE LIMITED AND ORS.
VS
L & T FINANCE LIMITED
BEFORE:
The Hon'ble JUSTICE ARINDAM MUKHERJEE
Date: 11th September, 2025
Appearance:
Ms. Kruti Bhavsar, Adv.(VC)
Mr. Jnanada Prosad Roy, Adv.
Mr. Nepesh Majhi, Adv.
. . For the appellants.
Mr. Paritosh Sinha, Adv.
Ms. Shrayashee Das, Adv.
Mr. Rohan Kr. Thakur, Adv.
. . .For the respondent.
The Court :- This is an appeal under Section 37(2)(b) of the
Arbitration and Conciliation Act, 1996 (hereinafter referred to as 'the 1996
Act') arising out of an interim order dated 21 st June, 2025 passed by the
learned Arbitrator in an application filed by the respondent under the
provisions of Section 17 of the said Act. The order has been challenged inter
alia amongst other on the ground that the learned Arbitrator does not have
the jurisdiction to adjudicate the disputes between the parties on having
been unilaterally appointed by the respondent invoking the arbitration
agreement between the parties. Admittedly the parties entered into a loan
agreement described as Loan Facility Bearing Agreement
No.BL220906040100199 dated 14 th September, 2022 which contains a
clause for Dispute Resolution being the arbitration agreement between the
parties.
The facts of the instant case is more or less identical to that in an
appeal also under Section 37(2)(b) of the 1996 Act being APOT 208 of 2025
(Beevee Enterprises & Ors. Vs. L & T Finance Limited) and the stay
application filed therein. The said appeal in Beevee Enterprises (supra) has
been disposed of by a detailed judgment dated 11 th September, 2025.
In the instant case the respondent has placed before the Court a
computation to show that on account of overdue installments as on 10 th
September, 2025 a sum of Rs.12,28,650.64p is due and payable apart from
other claims said to have arisen in terms of the agreement. The appellants
dispute the correction of the amount claimed and submit that they are not in
a position to pay any money apart from being not liable to pay any amount
upon being directed by an Arbitrator who has no jurisdiction.
The other submissions made on behalf of the appellants and the respondent
including their consent to terminate the mandate of the Arbitrator are also
identical to that in Beevee Enterprises (supra).
In the aforesaid facts and circumstances, by applying the ratio laid
down in the judgment delivered in Beevee Enterprises (supra), the mandate
of the Arbitrator, namely, Mr. Shyam Bihari Sharma stands terminated
under the provisions of Section 14 and 15 of the 1996 Act. Mr. Raj Ratna
Sen, a barrister and an advocate being a member of the Bar Library Club is
appointed as the Sole Arbitrator by invoking the provisions of Section 15 of
the 1996 Act in his place and stead and to enter into reference afresh and
adjudicate all disputes arising out of the agreement dated 14 th September,
2022. The arbitration proceedings shall commence de novo and the
Arbitrator shall have to comply with all other requirement under the 1996
Act. The learned Arbitrator so appointed shall be entitled to a lump sum
remuneration Rs.2,000,00/- in view of the ratio laid down in 2024 (4) SCC
481 [ONGC Ltd. v. Afcons Gunanusa JV.] The remuneration shall be
shared equally by the appellants and the respondent. The Arbitrator shall
be entitled to secretarial assistance which along with all other expenses in
conducting the arbitration shall be borne by the parties in equal share. The
venue of the Arbitration shall be at Kolkata.
The appellants and each one of them are restrained by an order of
injunction from operating its bank accounts, the particulars whereof are
provided at Page 20 of the Memorandum of Appeal without leaving an
aggregate balance of Rs. 2,50,000/-. The appellants may choose to keep the
said sum of Rs. 2,50,000/- in one single account or in part in different
accounts to aggregate value of which is Rs.2,50,000/- until further orders to
be passed by the Learned Arbitrator.
The appeal and the connected application accordingly stand
disposed of.
Urgent photostat certified copy of this judgment be supplied to the
parties, if applied for, upon compliance of all requisite formalities.
(ARINDAM MUKHERJEE, J.)
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